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5 Responses to Will the bailout prevent a depression?

I am sitting here listening to the hearing on this and all I keep hearing is “think about this from the American taxpayer who is already on the hook”… BS

The only people already on the hook are the one’s that own these banks.

The Europeans are having the same problem and their answer? Let the banks get through it on their own. If that doesn’t clue everyone into how much of a fallacy this whole issue is, I don’t know what will?

Banking disaster? Only if you own one of these failed banks… I am not buying this “bush reality” – not even a little bit. It all looks like a massive transfer of wealth from the poor to the rich for no other purpose than to support their failure at our expense.

The fear of a looming recession? We are in it whether or not these banks fail and it is going to get worse whether these banks fail or not.

Wait: the emerging mega-banks squeezed community banks and other small instiututions hard, just as mega-corporations squeeze small businesses out of the market. It looks to me like this could be the opportunity of a lifetime! If the megabanks fail, there’s a vacuum that needs filling– and it will be filled. Sure, in some cases it’ll get filled by the Friendly Neighborhood Loan Shark. But the opportunities for entrepreneurs for small banks and other financial ventures would also increase logarithmically.

Bernanke’s warning that the economy would grind to a halt without credit doesn’t frighten me, either: I’ve been doing business on a cash-and-carry basis for over a decade.

They created their own mess. Let’em fail!

(Besides, if things get really bad, I’ve got 5,000 rounds of 7.62×39– a currency that won’t lose its value in a meltdown.)